Essay 39 Inflation/Rising of Prices for 12/BA/B.Sc. English by AG Ahmad

 Essay No 39

Inflation Or Rising of Prices

OUTLINE: (For BA Students)

1. Prices of necessities of life are increasing constantly.

2. The problem of inflation is a serious headache in every country.

3. Inflation encourages malpractices in trade and business. People fall a prey to moral evils.

4. There are many factors which cause inflation.

5. Government should adopt healthy measures to stop inflation.

The prices of necessities of life are rising constantly. They are posing a serious problem for everybody in the country. The problem of rising prices has become universal problem. This problem assumes an acute form in the developing countries, like Pakistan. The majority of people in our country belong to the low income group. As, it is wisely said,

"Inflation makes the wealthiest people richer

and the masses poorer."

Usually, they have very meager sources of income. Very often the income of people is fixed. Therefore, they are hard hit by the high prices of essential goods which register a rise every week and every month. The result is that the standard of living of the poor people is dwindling day by day. As, some-one has wisely said,

"Inflation is the one form of taxation

that can be imposed without legislation."

Inflation has an adverse effect on different sections of society. Most of people have not sufficient means to buy the necessities of life. They are compelled to use unfair means to have them. In this way, the society is troubled by pick-pockets, thieves and robbers etc. Those government servants who cannot make both ends meet become corrupt. They abuse their powers and accept bribe. In this way, they promote injustice and cruelty in national life.

"Inflation is like toothpaste.

Once it's out, you can hardly get it back in again."

Rising prices also affect national life in the economic field. The businessmen think of adulteration, black marketing and other methods to maximize their profits. Since the prices of goods are beyond the reach of common man. The standard of living goes on falling gradually. There are many factors which cause rise in prices. As, some-one has wisely said,

"Inflation is not only unnecessary for economic growth. 

As long as it exists it is the enemy of economic growth."

First, the most important of these is the increase in population. The population of a country is increasing at a rapid rate. But the economic resources do not increase at the same rate. It results into inflation.

Second, if the demand is higher than the supply, the goods will be naturally sold at higher prices. Sometimes, the government imposes higher taxes on certain commodities so that their prices go up. The wrong policies of government often lead to hoarding, smuggling and black marketing of the essential goods. As, some-one has wisely said,

"Inflation is a form of tax,

a tax that we all collectively must pay."

Third, if a businessman has a monopoly in the production and sale of a certain commodity, he can raise its price whenever he desires. In developing countries like Pakistan, the developmental activities usually cause inflation. The funds and the plans that are acquired from foreign countries are invested on different projects. They increase the circulation of money in the country and cause inflation. As, some-one has wisely said,

Inflation is as violent as a mugger,

as frightening as an armed robber and as deadly as a hit man.

Our first duty should be to check the birth rate. We should make a vigorous propaganda in favour of family planning. Second the government should not pose so many taxes, levies, duties or surcharges on those commodities which are used by the common man and which are considered necessary for human life.

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